RERA Launches Service Charge Index
The Real Estate Regulatory Agency, the regulatory arm of Dubai Land Department has announced the launch of the first Service Charge and Maintenance Index for properties within Dubai's freehold areas. Designed to be applied to services areas and common spaces and be under the management of owners associations and property developers, the Service Charge and Maintenance Index is one tool in a range of e-services that DLD has launched at GITEX, the technology exhibition currently underway at the Dubai World Trade Centre, to improve government services and to encourage investment in the emirate's real estate sector.
"The launch of the Service Charge and Maintenance Index enables landlords and property investors in Dubai to know the service charges and fees that are paid for each project. It represents a necessary step in light of the diversity of the emirate's real estate offerings to expand the scope of e-services that we offer to our clients and ensure the maximum possible level of convenience and transparency," said Mohammed Khalifa bin Hammad, Senior Director, RERA.
The Service Charge and Maintenance Index is based on accurate data audited by RERA, with the information being verified with owners associations and real estate developers. The Index has been divided into four main categories of residential property: apartments, offices, shops and villas and the level of service and maintenance charges is determined by a Dirhams-per-square-foot formula.
The Service Charge and Maintenance Index is updated directly via an e-link with 'Mollak,' a system that has been developed specifically to assist property developers and owners associations in complying with all RERA registration and management requirements. The information is derived through audits carried out by RERA on service charges and maintenance fees before the owners associations and developers claim the charges from the property owners.
Through access to the link via the DLD website, the user can receive answers about maintenance and service charges to be paid for a particular project. The system, which has recently been introduced onto the website, is easy to use, with the user asked to choose the project area from the list of given areas and then enter the type of project and its year to receive information on the applicable fees.
RERA has been able to audit the service charges and maintenance fees of 420 projects, with the current number of developments currently available in the Index numbering 300. The Index includes properties located in 22 major development projects; notably: Business Bay, Dubai Marina, Jumeirah Beach Residence, Jumeirah Lakes Towers, International City, Motor City and Silicon Oasis.
"Since its inception, the Service Charge and Maintenance Index has covered a wide range of areas of development in Dubai and we are working hard to include even more projects. In the near future we aim for the Index to cover all of the emirate's urban areas and provide this service to all our customers," added Bin Hammad.
DLD is developing and introducing a comprehensive array of electronic services that are compatible with the Dubai government's vision for being the world's smartest city within three years. The department is enhancing its initiatives to reduce the time and effort involved in checks and other routine procedures that take up so much of their customers' time, especially in light of the existence of Dubai's electronic infrastructure and the proliferation of smart devices in the region.
